Correlation Between Ark Restaurants and Emeren
Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and Emeren at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ark Restaurants and Emeren into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ark Restaurants Corp and Emeren Group, you can compare the effects of market volatilities on Ark Restaurants and Emeren and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ark Restaurants with a short position of Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and Emeren.
Diversification Opportunities for Ark Restaurants and Emeren
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ark and Emeren is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group and Ark Restaurants is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ark Restaurants Corp are associated (or correlated) with Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and Emeren go up and down completely randomly.
Pair Corralation between Ark Restaurants and Emeren
Given the investment horizon of 90 days Ark Restaurants Corp is expected to generate 2.14 times more return on investment than Emeren. However, Ark Restaurants is 2.14 times more volatile than Emeren Group. It trades about 0.0 of its potential returns per unit of risk. Emeren Group is currently generating about -0.07 per unit of risk. If you would invest 718.00 in Ark Restaurants Corp on September 8, 2025 and sell it today you would lose (9.00) from holding Ark Restaurants Corp or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.15% |
| Values | Daily Returns |
Ark Restaurants Corp vs. Emeren Group
Performance |
| Timeline |
| Ark Restaurants Corp |
| Emeren Group |
Ark Restaurants and Emeren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ark Restaurants and Emeren
The main advantage of trading using opposite Ark Restaurants and Emeren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ark Restaurants position performs unexpectedly, Emeren can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Emeren will offset losses from the drop in Emeren's long position.| Ark Restaurants vs. National Rural Utilities | Ark Restaurants vs. Plaza Retail REIT | Ark Restaurants vs. BJs Wholesale Club | Ark Restaurants vs. Ultra Clean Holdings |
| Emeren vs. Silk Road Entertainment | Emeren vs. American Eagle Outfitters | Emeren vs. Broadridge Financial Solutions | Emeren vs. Gaztransport Technigaz SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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